When a Debit Spread goes bad even when it is right.

On June 2017 I entered into a debit spread on STMP. I bought the JAN18 $140.00 calls and sold the JAN18 $160.00 calls against them for a debit of $8.78. STMP was trading at $142.40.0

STMP has gone up as high as $154.00 since I entered the position and I have still not been able to close the position for the profit I am looking for. Today I closed half my position for about $10.00 per spread. Even though STMP I up over $10.00 since I entered the trade I only made a little over $1.00 per spread when I closed half my position.

This is what happens when option spreads SUCK! Most of these types of trades I enter work out great but this time … the spread have gotten best of me. I can still make a lot of money if STMP stays the same or continues up, but ideally I would be closing now and making big bucks.

You have to watch the spread when trading options. Probably would have done better if I had traded a spread with less time on it but I normally like the time to ensure I have every opportunity to be right.

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